Debt fears up sharply among boomers

By Matthew Heimer

We’ve been hosting a survey this week in which we ask Encore readers: When it comes to preparing for retirement, “what’s the best money move you’ve ever made?” The answer “paying off the mortgage” is a popular response, with about 20% of readers picking it as their best move so far, and a quick digital stroll through the comments section reveals plenty of other readers touting the virtues of getting and staying debt-free, whether that means paying off credit cards or driving used cars to avoid financing.

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Once you actually retire, being debt-free typically means having fewer fixed costs, which lets your nest egg last longer. But a survey released today by the insurance brokerage Securian reminds us that not only is a debt-free retirement no longer the norm—it may be getting even rarer. Securian interviewed about 1,000 people between the ages of 50 and 75: Among those who weren’t retired yet, 67% said they expected to have mortgage debt in retirement, up from 30% in the same survey in 2007. About 40% of the pre-retirees said they’d have credit-card debt when they retired. And 36% said they thought that when they retired, their debt would be greater than the value of their savings and investments. Read the survey in full here.

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Encore looks at the changing nature of retirement, from new rules and guidelines for financial security to the shifting identities, needs and priorities of people saving for and living in retirement. Our lead blogger is editor Matthew Heimer, and frequent contributors include editor Amy Hoak, writer Catey Hill, and MarketWatch columnists Elizabeth O’Brien, Robert Powell and Andrea Coombes. Encore also features regular commentary from The Wall Street Journal retirement columnists Glenn Ruffenach and Anne Tergesen and the Director of the Center for Retirement Research at Boston College, Alicia H. Munnell.